Herencia Resources Regulatory News (HER)

2 May 2006 11:40

Herencia Resources PLC02 May 2006 Herencia Resources plc Exploration Update Highlights - Iquique project drilling program of 36 holes and 3887 metrescompleted. - The assayed results of the Iquique drilling program will be releasedas soon as received, collated and assessed. - Paguanta sampling and mapping is continuing to define themineralization and identify drill targets. Background of Herencia Resources Plc in Chile Herencia Resources Plc (Herencia) acquired an interest in 2 prospective silverand copper districts in Chile in November 2005, both of which have never beendrilled or explored using modern systematic exploration techniques. Herencia hasa right to earn a 70% interest in the Iquique and Paguanta projects located innorthern Chile. Iquique Project The Iquique project area covers secured tenements over approximately 97 km2 onthe coast of northern Chile. This mineral field contains numerous old silverworkings dating back to the Inca Empire and the Spanish colonial era. Thisproject area covers almost the entire Iquique mining district, which in the 19thCentury, with over 60 operating mines, was the second largest silver producer inChile. A drilling program of 36 holes was completed in March 2006. A total of 3887metres was drilled to an average depth of 110 metres. Drill holes wereclustered at the Rose Marie oxide copper prospect (7 drill holes), the RosaAmelia mine area (8 drill holes), the Monte Cristo mining centre (8 drill holes)and in three groups in the Pajonales mining centre (13 drill holes). Drill holeswere spread at an average of 50 metres along the drilled line, with drilledlines spread at an average of 188 metres apart. The drill samples have all been delivered to the local sample processinglaboratory and are shipped for analysis as soon as they are processed. Delaysin processing have occurred due to the large load of both production andexploration samples inundating the laboratories as a result of higher metalsprices and increased exploration activity. Results for only 19% of the sampleshave been received to date. Due to the current delays being encountered inprocessing and analysis it is not expected at this stage that the final assayswill be received for six more weeks. If there are any further delays or theresults are received earlier than expected then a further announcement will bemade. The average grades of mineralization will be announced as soon as all the assayresults have been received, collated and assessed. Paguanta project The Paguanta Project is located on the northern trend of the main Chileanporphyry copper belt, approximately 120km east of the coastal port of Iquiqueand 20 km south of highway to Bolivia. Paguanta has old workings which providedrill targets and additionally our geologists have identified a number of othertargets of potential disseminated base and precious metal mineralization thatwill be evaluated. Bad weather and initial difficult road access delayed the planned start of workat Paguanta. Improved weather and alternative road access has enabled theinitial program of geologic mapping and sampling to get under way. Channel sampling is being undertaken in the old underground mine workings. Thesamples collected will be analysed and the results announced as soon as all havebeen received, collated and assessed. Geologic mapping and sampling on a 25 metre grid is also being undertaken withthe objective to further develop information about the alteration andmineralization that was evident from previous mapping at a larger scale. Geologic mapping and sampling on a 25 metre detailed grid area is also beingundertaken with the objective to develop detailed information about thealteration and mineralization that was not evident from the previous mapping at50 metre centres a larger scale. A total of 345 surface and underground samples have been taken at Paguanta anddelivered to the CESMEC laboratory near Iquique, Chile, for processing, of which192 have now been shipped to Acme Analytical Laboratories S. A. for analysis forgold, silver, copper, lead and zinc. Approximately 250 more samples are plannedfrom other underground workings, from trenches and from mineralization exposedby road cuts. A program of stream sediment sampling covering the entire property will beinitiated in the near future to evaluate the extensive alteration zones found onthe property. A diamond drill program of approximately 2000 metres isanticipated to begin in September. James R. Reeves, Registered Professional Geologist, General Manager of IquiqueResources, has reviewed the information contained in this announcement. JamesReeves has over 36 years experience in the resources sector and is a qualifiedperson within the definition of the AIM guidelines. Further background details on the Company and its Iquique and Paguanta projectscan be found at www.herenciaresources.com. **ENDS** Contacts: Tony Barton +618 9325 8888 This information is provided by RNS The company news service from the London Stock Exchange